Understanding that there is a difference between needs and wants is a key part of financial literacy. When you have a lean budget, you definitely want to maximize your money. You will also want to increase your savings as much as you can. So, you wouldn’t want to spend money on items you probably don’t need. But the question remains, how do you know these items you don’t need?
But before we go on, you’re probably asking why you should care about avoiding these expenses.
Why avoid these expenses?
We are getting closer to the end of the year 2022. In a few weeks, we will be waving goodbye to it and welcoming 2023. Guess what? A lot of people make “new year’s resolutions” but don’t follow them because there is no concrete plan. If you want to be more intentional about your personal finance and Personal savings in 2023, keep reading.
What are the expenses you should avoid
1. Buying top brands
You might get shocked at this, but the truth is that low-priced products are often just as good, if not better than the big names.
Low-priced brands are always around us and are very affordable also. The major factor that drives people to go for high-end brands is the urge to show off or impress. If you must save and increase your finances in 2023, you have to overcome the urge to impress and begin to do what benefits you.
2. Avoid paying for simple fixes
Having an “expert” come to do simple fixes at home will cost you a lot. You might not realize, but when you put together all the amounts used in simple fixes, you would come up with a tangible sum.
You might not be an expert, but some home fixes are actually very simple, and with one or two Youtube videos, you will sort them out.
3. Unnecessary insurance
Without realizing it, you may be paying for more insurance than you need, particularly if you haven’t taken a look at your policy coverage in a few years. Learn the basic things about finance and insurance to increase your financial literacy. Don’t leave everything to insurance brokers.
4. Pricey gym memberships and exercise classes
In the quest to keep fit, you might discover you are paying too much for it. There are gym memberships that cost a lot more than necessary, and even virtual exercise classes can be pricey. Take the time to see if these expenses truly fit into your budget and match your priorities.
You can go for less expensive plans, while you also engage in other body-building activities off the gym house. It is your consistency that pays, not the amount you paid
5. Avoid Eating out always
Cooking at home is always the cheaper option. Eating outside gets even more pricey when you’re having those meals delivered, as you spend a lot on delivery fees. Although some restaurants run on subscription bases which come with discounts, they are still costlier than preparing your meal at home.
Have you ever had to spend on any of the listed expenses? Did we miss any? If you must achieve financial freedom, you should take action towards it. Look out for subsequent articles as we will list more expenses you should avoid as the year ends.